Moody's rates AEC Parent, loans B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to AEC Parent Holdings, Inc. (Advancing Eyecare). The ratings are being assigned in conjunction with the leveraged buyout of the company. The agency also gave B3 ratings to the company's planned first-lien credit facilities, consisting of a $40 million revolver due 2027, a $250 million term loan due 2029, and a $50 million delayed-draw term loan due 2029. The outlook is stable.

In May, Cornell Capital LLC agreed to acquire the majority interest in Advancing Eyecare from owner Atlantic Street Capital. The acquisition will be financed with the $250 million first-lien term loan, along with new sponsors' equity and management rollover contribution.

The B3 CFR broadly reflects its moderately high pro forma financial leverage of 5.9x for the 12 months ended March 31, on Moody's-adjusted basis, the agency said. “The rating is also constrained by the company's modest, albeit growing absolute scale, and event and financial policy risks related to its private equity ownership. Advancing Eyecare benefits from its leading position among providers of ophthalmic products and services, with a diversified customer base.”

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